Top 2 Reasons for eCommerce Cart Abandonment and How to Fix Them

Customers often encounter numerous frustrations while shopping online, but shipping doesn’t have to add to the list. A customer feedback study by Baymard Institute revealed that 48% of shoppers abandon their carts due to unexpected extra costs, including shipping fees. High shipping costs remain the leading cause of cart abandonment, making it imperative for businesses to address this issue effectively.

High Shipping Costs: The Leading Culprit

A 2024 study by Baymard shows that nearly half of all cart abandonments result from unexpected fees. Additional research by Statista echoes these findings, reporting that 63% of shoppers in 2023 cited expensive shipping as the primary reason for leaving their carts. The trend underscores the need for competitive and transparent shipping costs to retain customers.

Fast Delivery: The Other Key Factor

Consumers expect fast delivery as the norm, thanks largely to services like Amazon Prime. Same-day delivery capability increasingly plays a crucial role in the customer journey: 58% of consumers say that being able to search for items available for same-day delivery is important when shopping online. Additionally, 64% of shoppers expect orders placed by 5 p.m. to qualify for next-day delivery, while 61% expect orders placed by noon to qualify for same-day delivery.

Practical Solutions to Reduce Cart Abandonment

To address the twin challenges of shipping costs and delivery speed, businesses need to implement strategic solutions:

1. Incorporate Shipping Costs Into Product Pricing •Integrating shipping fees into the product price can create the perception of “free shipping” while maintaining profitability. For example, 3PL providers like ShipBob and Flexport offer predictable flat rates, enabling sellers to accurately forecast expenses and adjust their pricing strategies. Source: ShipBob

2. Leverage Third-Party Logistics Providers (3PLs) •Partnering with 3PLs that offer flexible pricing and reliable service can help reduce fulfillment costs. For example, companies like Ryder provide tailored solutions that focus on both cost efficiency and delivery speed, ensuring customer expectations are met without compromise. Source: Ryder

3. Optimize Fulfillment Channels •For sellers on Amazon, utilizing Fulfilled by Amazon (FBA) ensures access to competitive rates and fast shipping options. Sellers operating on other platforms should seek comparable fulfillment solutions tailored to their business model. Source: Amazon FBA

Delivery Errors and Customer Retention

Delivery speed isn’t just about customer satisfaction; it’s also about retention. According to PwC, even when customers love a company or product, 59% of U.S. consumers will walk away after multiple bad experiences, and 17% will leave after just one. Negative reviews following delayed deliveries can significantly harm a brand’s reputation. According to a survey by PwC, 40% of consumers believe that reading other customers’ reviews could significantly reduce the number of returns they make. On the flip side, 10% of online shoppers report that they rarely, if ever, return items.

Improving Delivery Speed

• Enhance Inventory Placement: Use data analytics to position inventory closer to major customer hubs, reducing transit times.

• Streamline Last-Mile Delivery: Collaborate with local couriers or invest in micro-fulfillment centers to improve delivery efficiency.

Addressing high shipping costs and ensuring fast delivery are critical for reducing cart abandonment. By optimizing shipping strategies and leveraging reliable logistics partners, businesses can stay competitive and meet customer expectations in today’s demanding eCommerce landscape